Short Interest Reporting
Firms are required to submit short interest reports bi-weekly. All short interest positions must be reported by 6 p.m. Eastern Time on the second business day after the reporting settlement date designated by FINRA. See the 2013 schedule of reporting dates.
The SEC approved amendments to FINRA Rule 4560 (Short-Interest Reporting). The amendments: (1) codify the requirement that member firms report only “gross” short interest existing in each proprietary and customer account (rather than net positions across accounts); (2) clarify that member firms’ short-interest reports must reflect only those short positions that have settled or reached settlement date by the close of the FINRA-designated reporting settlement date; and (3) delete certain existing exceptions to the rule. See Regulatory Notice 12-38.
Effective December 15, 2011, FINRA's Web-based Regulation Filing Applications (RFA) will include a new exchange/market code "H" for reporting short interest positions in securities listed on the BATS Exchange. See Regulatory Notice 11-55.
Effective June 30, 2008, firms must report short interest positions in all securities—including NASDAQ, NYSE, NYSE MKT, NYSE Arca and OTC equity securities—through a single source on a bi-monthly basis: FINRA's Web-based Regulation Filing Applications (RFA) system (see Regulatory Notice 08-13). Firms are reminded that they must designate each issue symbol contained in their short interest reports with the correct exchange/market code.
On March 6, 2007, the SEC approved amendments to Rule 33601 that increase the frequency of short interest reporting from monthly to twice a month. Effective September 7, 2007, member firms will be required to file short positions with FINRA using the Web-based RFA twice a month (see NTM 07-24). The mid-month Short Interest Report will continue to be based on short positions held by members on the settlement date of the 15th of each month. If the 15th falls on a weekend or another non-settlement date, the designated settlement date will be the previous business day on which transactions settled. The end-of-month Short Interest Report will be based on short positions held on the last business day of the month on which transactions settle.
At the beginning of each short interest reporting cycle, the Regulation Filing Applications (RFA) creates a "draft" filing for each FINRA member that reflects the short interest positions reported by the member during the previous cycle's reporting period. If, however, an issue symbol that was reported during the previous cycle's reporting period is no longer active (i.e., the issue symbol has changed or expired), RFA currently designates the issue symbol as inactive and does not allow the member to input a position for that issue symbol for the current reporting period. The short position must be added to the member's filing and include the correct issue symbol.
Beginning with the February 2007 short interest reporting period, issue symbols are designated as active or inactive based on a security's Issue ID number rather than the issue symbol. This modification to the system resulted in changes to the member's "draft" filing. Specifically, if a security's issue symbol changes between reporting periods, the draft filing displays the most current active issue symbol for that security along with the short position the member reported during the previous cycle's filing, even if that short position was reported under an issue symbol that is no longer active. Also, should a security move among the NASDAQ, OTC equity, NYSE, NYSE MKT and NYSE Arca exchanges or market centers between reporting periods, the draft filing displays the most current active exchange or market code for the security along with the short position the member reported during the previous cycle's filing. If a security moves to an exchange or market center other than NASDAQ, OTC equity, NYSE, NYSE MKT or NYSE Arca, RFA designates the issue symbol as inactive and does not allow a member to input a position for that issue symbol for the current reporting period.
Questions about the changes described above may be directed to Yvonne Huber at (240) 386-5034, Jocelyn Mello-Gibbon at (240) 386-5091 or Lauren Zito at (240) 386-5432. For general information concerning the Regulation Filing Applications, please call (800) 321-6273.
Regulation Filing Account Administrators are responsible for providing and maintaining primary and secondary contact information in the Firm Contact fields for Shorts with the most current and accurate information. This information is necessary in the event that an application’s designated person needs to be notified of any system problems or for verification of information that was submitted by the member firm. The name, title, address, telephone number, fax number, and e-mail address for the firm’s designated primary and secondary contacts should be provided for each application.
FINRA may require verification of certain reported short interest positions filed by member firms. Such requests will be directed to the individual designated by each member firm as its Shorts Application Contact. Therefore, member firms should promptly update their contact information following changes to ensure that inquiries made by FINRA are addressed in a timely fashion.
Please view general instructions for the Regulation Filing Shorts Application. They include information concerning member firms' obligations with regard to reporting short interest data, system requirements, and file upload specifications.
Firms should already have access to the RFA that is currently being used for Web-based FOCUS filings. For additional information regarding access to the Web-based system if your firm has not already received access, please refer to NTMs 99-70 and 99-101.
Questions concerning short interest reporting may be directed to Yvonne Huber at (240) 386-5034, Jocelyn Mello-Gibbon at (240) 386-5091 or Lauren Zito at (240) 386-5432.
1 Effective December 15, 2008, FINRA Rule 4560 incorporated NASD Conduct Rule 3360 and NYSE Rule 421.